In conjunction with the potential East Coast Strike, the carriers are now starting to band together and implement a Port Congestion surcharge which would take effect September 26th. This charge is designed to allow the carriers the ability take advantage of a market situation which to the importer is totally unavoidable. The amounts for this surcharge will vary per carrier, but importers can expect to pay somewhere near the $1000.00 per 40′ft container on top of the base ocean costs. In the event the port strikes are resolved without conflict, importers should see this potential charge drop or be short lived should this charge be implemented.

Finally, the carriers are going to implement a second General Rate Increase (GRI) September 10. It doesn’t take a genius to figure out why they are doing this.

The bottom line is that anyone now utilizing offshore manufacturing needs to protect themselves with US manufacturing for the holiday season, NO MATTER WHAT THE COST. Look at it this way. What is more expensive, US manufacturing, or not receiving the goods manufactured in Asia at all?

Send an email to Info@paragonpackaging.com, or call 707-786-4004 to inquire about current scheduling.

Share on Facebook

http://abclocal.go.com/kgo/story?section=news%2Fbusiness&id=8667710

Share on Facebook

The key, however, is that most of those products are not necessarily tied to price resistance. For example, cosmetics and alcoholic beverages are two products that have long utilized high gloss coatings in their packaging. Men and women hardly ever base their buying decisions for cosmetics on the price. Price is a low level factor compared to how we think we look and how it makes us feel. The same goes for products such as liquors, whose gift packaging is commonly spruced up with single or multiple coatings, including high gloss and even foil stamping.

These printing techniques cost more per unit produced, whether added in line or as a secondary coating operation. Again, if cost is a low consideration for a particular product, it’s about gaining the attention. But, when cost matters, and it usually does, high gloss coating is the first thing to eliminate from consideration for board game products. There is just no way to recover the cost from the consumer, meaning it decreases profit margins, with the added consideration that the addition of the coating may jump the product right out of a price category.

Furthermore, since almost all board games are shrink wrapped with a semi high gloss film, the consumer will not appreciate the gloss level of UV until well after the buying decision has been made.

Share on Facebook

According to the story in the Wall Street Journal, “In its decision, the appeals court said it was unfair to give Mattel the Bratz line, because its value was “overwhelmingly” created by MGA.  In addition, the court said that in any new trial the district court should address whether Mattel owned Mr. Bryant’s ideas under his contract.”

Share on Facebook

http://www.msnbc.msn.com/id/42704167/ns/business-us_business/?ocid

Share on Facebook

In a nutshell, the criteria are:  Is it Fun?, Is there a Reward?, Is it Challenging?, Is it Non-Frustrating?, Does it have Repeat Play Value?, Is there “Magic” to the game.

I love this kind of stuff.  When we manufacture a board game, we want our customers to be successful.  Asking questions of this type are certainly important to the process.

Share on Facebook

CPSC Extends Stay of Enforcement for Testing and Certification of Lead Content in Children’s Products Until December 31, 2011

WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) voted 4-1 on January 31, 2011 to extend the stay of enforcement for testing and certification of lead content in children’s products (except for metal components of children’s metal jewelry) until December 31, 2011.

Starting on December 31, 2011, manufacturers and importers of children’s products that are subject to the lead content limit must have the appropriate certificates that indicate that their products have been tested by a CPSC-approved third party laboratory, in order for their products to be sold in the United States.

Despite the stay of enforcement on testing and certification, manufacturers, importers and retailers of children’s products must continue to comply with the federal restrictions for total lead content. The Consumer Product Safety Improvement Act of 2008 (CPSIA) requires that all children’s products have no more than 300 parts per million (ppm) of lead content. The lead content limit will drop to 100 ppm on August 14, 2011, unless CPSC determines that it is not technologically feasible to establish this lower limit for a product or product category. The CPSIA also establishes a limit of 90 ppm for lead in paint and surface coatings.

The stay of enforcement does not apply to the 90 ppm limit on lead in paint and surface coatings or to the current 300 ppm limit on lead content in metal components of children’s jewelry. Certification based on third party testing is currently required for children’s products in these categories.

Share on Facebook

Jan 27^th, 2011 CNY Shanghai Port Situation

–Customs computer was congested these days due to over capacity of the export entry.

–Most of the express pouch companies are short of manpower for pouch delivery, shipping documents will be delayed minimum 2 days extra sent from shippers.

Same old problem every year before Chinese New Year Holiday even worse this year:

–All the factories want to clean up the cargo and close for the long holiday early.

–Truck drivers left earlier for the holiday due to the critical train tickets, some left duty two weeks ago.

–Heavy congestion at the terminal and container yard, pick up and deliver a container need 4 time extra hours.

–Some carriers re-scheduled the cut off time and terminal opening hour due to the over booking.

–Many shippers ask us to arrange the trucking drayage at the very last minute as they can not find the trucker any more or simply dump the cargo into our w/h for container loading.

–Another heavy snow storm will start tonight, the traffic on the high way and local will be further messed up.

–Space for most of the carriers was fully booked until week 6.

Share on Facebook

Share on Facebook

http://blogs.wsj.com/marketbeat/2011/01/24/whats-smoking-hot-yep-cardboard-boxes/?KEYWORDS=bmo+capital+market

Share on Facebook